There are many types of strategies developed based on indexes. Different investors tend to choose strategies of different styles due to their different risk preferences and investment habits. Here we introduce to you three main index investment strategies : fixed investment, large and small cap rotation and batch investment. Starting from September 30, 2019, the strategies will be simulated through specific indexes (taking the CSI 100 and GEM Index as examples), and the income will be broadcast daily, so that everyone can grasp the main logic of the three strategies and the simulated income, help everyone better choose the investment strategy that suits you, and understand the charm of index investment !
Each investment strategy is suitable for different market environments. The purpose of sharing each strategy is to make it easier to find an investment method that suits you. Simply put, the fixed investment strategy is suitable for bear markets and volatile markets, the 28-year rotation is suitable for unilateral markets ( bull market or bear market), and batch buying is suitable for volatile markets.
1. Fixed investment strategy
Fixed investment means investing a fixed amount at a fixed time in a designated open-end fund . Compared with fixed investment, one-time investment returns may be high, but the risks are also high. Since it avoids the influence of investors' subjective judgment on the timing of entry, the risk of fixed investment is significantly lower than that of stock investment or fund single investment chasing high and killing low .
When choosing a type of fixed investment index fund, there are generally two ways to determine it: the first is to choose an index with high elasticity and high growth. This type of index generally has a higher annualized rate of return, the greater the volatility, and the greater the rebound in the bull market. CSI 100 is the representative of the "core blue chip " index with high returns and high dividends. It is the target of Nuggets China's core assets. The combination of the two can reduce certain structural risks and avoid shortfalls, so it is suitable for funds to invest in .
Specific steps:
Taking September 30, 2019 as the first day, a fixed amount of 1,000 yuan will be invested before the close of the last trading day of each week from the first day (including the first day), and the fund shares that can be purchased by investing 1,000 yuan in this period will be calculated based on the index closing point . The cumulative investment period, cumulative investment amount, current market value of the portfolio, and fixed investment cumulative rate of return will be updated after the close of each working day. Calculate the above indicators for three situations: only buying CSI 100, only buying GEM Index, and investing 1:1 into CSI 100 and GEM Index.
As of today, the CSI 100 Fixed Investment Portfolio has invested 166html in 5 periods, with a cumulative investment amount of 166000 yuan. The current market value of the current portfolio is 139628 yuan, and the cumulative rate of return is -15.89%. The designated investment portfolio of
GEM has invested a total of 166html for 5 periods, with a cumulative investment amount of 166000 yuan. The current market value of the portfolio is 152963 yuan, and the cumulative rate of return is -7.85%.
The fixed investment combination of CSI 100 and GEM Index (1:1) has invested 166html in 5 periods, with a cumulative investment amount of 166000 yuan. The current market value of the combination is 146295 yuan, and the cumulative rate of return is -11.87%.
Note: The data comes from Wind. Investment rate of return = current portfolio market value/accumulated investment amount-1.
2. Super 28 rotation
If you don’t understand the super 28 rotation strategy, you can click on the article "Introduction to the 28 rotation and super 28 rotation strategy" for details!
conventional large and small cap rotation (i.e. 28 rotation) strategy is a timing strategy for large and small cap rotation based on the price trend of CSI 300 and CSI 500 index : where "two" represents about 20% of large cap heavyweight stocks (corresponding to Shanghai and Shenzhen 300 index ), and "eight" represents about 80% of small and medium-cap stocks (corresponding to CSI 500 index).We have improved the conventional large and small cap rotation strategy and developed an "enhanced version of the large and small cap rotation strategy". Specifically, we replaced the CSI 300 and CSI 500, representatives of China's core assets - CSI 100 and Growth Pioneer - GEM, respectively, to construct a new 28-year rotation strategy, which resulted in higher excess returns and winning rates.
Specific steps:
We use 1,000 yuan as the initial capital, and use the closing price of and of the index in the first twenty trading days as the benchmark to calculate the rise and fall of the CSI 100 and the ChiNext Index within 20 trading days. When the rise and fall of both are positive or one is positive and the other is negative, buy the index with the larger rise of and . When the rise and fall are both negative, do not buy either and hold cash. At the same time, in order to better simulate the actual situation, we set the minimum position period to 5 trading days, that is, if you hold CSI 100 or GEM for no more than 5 trading days, even if the strategy sends a position adjustment signal, you will still insist on holding it without adjusting the position.
counts the net worth and accumulated income of the portfolio on a daily basis. I started investing on September 30, 2019. The most recent position adjustment was when a position adjustment signal was issued after the market closed on November 15, 2022. I sold the ChiNext Index on November 16 and transferred to CSI 100. The cost was calculated based on the closing point of the index. After today's close, a position adjustment signal was issued, and the CSI 100 was sold on the next trading day and transferred to cash. As of December 28, 2022, the cumulative return rate of the portfolio is: 35.34%.
Data source: wind, Super 28 rotation investment return rate = current market value of invested capital/1000-1. For the calculation rules of the increase and decrease, please see the above text introduction. As of today, the 20-day range is from December 1, 2022 to December 28, 2022, based on the closing price.
3. The batch buying strategy
The buying method in batches is a relatively conservative investment method. When you are not very sure of the current market or do not have a source of continuous cash flow , it is best not to buy in one go. Instead, you can use the strategy of buying in batches. It is a good choice for most investors who do not have the ability to accurately choose timing.
The current valuation of CSI 100 index is 10.94 (September 30, 2019). If the index falls by 20%, the valuation will be 8.8. The historical quantile is 12%. The current valuation of the GEM index is 52 .63, if the index falls by 30%, the valuation is 36.8, which corresponds to the historical quantile of 15%, both of which are relatively historical lows. Therefore, we estimate that the threshold for the CSI 100 index to fall is about 20%, and the threshold for the GEM index to fall is 30%.
Specific steps:
Starting from September 30, 2019, we will conduct batch investments in the CSI 100 Index and the GEM Index. First, take CSI 100 as an example. Assume that the total investment amount is 1,000 yuan, divided into three amounts of 300, 300, and 400 for investment. The first investment is 300 yuan. If the CSI 100 index falls by 10%, invest 300 yuan, and then fall by 10% (that is, it will fall by 20% relative to the selected base period ), and invest the remaining 400 yuan; Similarly, assuming that the total investment amount is 1,000 yuan, it is divided into three amounts for investment: 300 yuan, 300, and 400 yuan. The first investment is 300 yuan. If the GEM index falls by 15%, invest 300 yuan. When it falls by another 15% (that is, it falls by 30% relative to the selected base period), the remaining 400 yuan will be invested. Calculate the returns of the two index batch strategies.
has daily statistical income statistics. Since the investment started on September 30, 2019, as of December 28, 2022, the investment return rate in batches of CSI 100 is -2.21%, and the return rate of investment in GEM index in batches is 13.10%.
Note: The data comes from Wind, investment rate of return = (current market value of investment amount + uninvested funds)/1000-1.
risk warning: This information is for reference only and does not constitute promotional materials, investment advice or guarantee for any business of the company, and does not serve as any legal document. The fund manager promises to manage and use the fund assets in accordance with the principles of good faith and diligence, but does not guarantee that the fund will be profitable, nor does it guarantee a minimum return. When purchasing a fund, investors should read the fund's fund contract, prospectus and other legal documents in detail to understand the specific situation of the fund. The performance of other funds managed by the fund manager and the past performance achieved by its investment personnel do not predict its future performance, nor do they constitute a guarantee of the performance of this fund. Fund investment requires caution.
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